7 signs that your expenses are more than your income

7 signs that your expenses are more than your income

7 signs that your expenses are more than your income

No one likes to live waiting for next month’s paycheck, and even worse, spend more than they earn! When one finds himself in trouble by the end of the month, it is stressful and brings huge financial troubles. If any of these things happen to you, you probably suffer from poor financial management, and it’s time to learn how to stop spending more money than you earn.

An individual is in a healthy financial position when the expenses are less than the income, but when the expenses become more than the income, this is a problem and how many people do not realize that they are in real trouble. In fact, many spend much more money than they can afford, but in the end they pay the full price.

1. You avoid planning your expenses

Deliberate avoidance of any tasks related to managing and managing your own money is a warning sign! This usually happens when you know that the situation is going to be unpleasant, so it is easy to avoid direct confrontation and wishing oneself that the future will be better. This method will not work for you! Choose a specific time of the week or month for financial planning, this will be better for you. If you are one of those who can’t stand the idea of ​​budgeting or planning their spending

2. You don’t know your net income

Subtract debt payments if you have monthly payments and other monthly expenses from your total monthly income. If the account is positive at the end of the month, this means that you are spending as much as you can. And you have the opportunity to invest some of your remaining income and build your wealth. But if your account is negative, this means that you are overspending and you are in real trouble! You have to evaluate your expenses and find ways to stop spending more than you earn

3. The more you get, the more you spend

“More money brings more problems” is a rule that has proven true with many, especially those who suddenly get more and fall into danger without realizing it. With every increase in income, there is an increase in spending (Parkinson’s Law). This is also a sign of your spending more than your income! In this case, you must break Parkinson’s Law to be able to save part of your income.

4. You live from paycheck to paycheck

Your spending in this case is so high that you have to wait for the salary to be paid. The obvious solution is to cut spending to a reasonable level. Think about what you can change in your life and what you should spend less money on. This could be changing housing for a more modest one, or buying a car at a lower cost, etc

5. People with the same income as you spend less

There are many relative circumstances that might make the lives of two people with the same income look different. The first may be single and the second a father of two children. Except in such circumstances, you may see similarities between your life and the lives of people with incomes similar to yours. If you both earn the same salary but one of you takes vacations and spends a lot, it’s time to cut back on your excessive spending pattern.

6. Don’t control impulse buying

It’s easy to justify spending money on a new gadget, trendy pair of shoes, or even a delicious dessert, especially if it wasn’t expensive in the first place. The joy of buying is unlike any other, but it does not last for long. If you find yourself wanting to experience this feeling over and over again, then this is a sign of impulse buying and it is a bad habit that will hurt your money. Learning to control impulsive spending will help you stop spending more than you earn

7. You don’t feel the need to save

It is very likely that you ignore the idea of ​​saving money. You may think that this is something extra or impossible! In either case you are wrong. If you save an amount of your monthly income (if it is 10%, that is better) and it will be good, even if the amount is very modest. If you realize that you’re living a life that doesn’t match your income, reading The Savings Law can help get you off to a good start. Rome was not built in a day and the same applies to your financial future.

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